BINIMOL SURESH Vs. THE DISTRICT INDUSTRIES CENTRE, WAYANAD

JUDGEMENT

(1.) The petitioner has established a small scale industrial unit using the financial assistance extended to her by way of a term loan by the second respondent bank. On 17.2.2016, the Government had extended to the petitioner an investment support in the form of subsidy under an Entrepreneurs Support Scheme. As per the said scheme, such subsidies are disbursed through the financing bank of the unit. A sum of Rs.17,08,774/- was the investment support received by the second respondent bank on behalf of the petitioner. The proceeds of the investment support received by the second respondent bank was credited in the current account of the petitioner. At the relevant time, approximately Rs.3.5 lakhs was overdue in the term loan account of the petitioner. Consequently, the said amount was transferred by the second respondent bank from the current account of the petitioner on two dates to the term loan account. The grievance of the petitioner is that though there is no over dues in the term loan account, the second respondent bank is not permitting her to withdraw the balance investment support lying in her current account.

(2.) A statement has been filed by the second respondent bank. The stand taken by the bank in the statement is that the bank is entitled to retain the balance investment support received by them on behalf of the petitioner in the current account of the petitioner for adjustment towards her liability in the term loan account.

(3.) Heard the learned counsel for the petitioner as also the learned counsel for the second respondent bank.